Company A takes out a hire purchase agreement on a new van. This is not used by them but instead they took out the finance on behalf of Company B (like a financial intermediary company). So Company A invoices company B for rental payments monthly. In this case, if company B is the "actual owner" and controls the asset, should the asset be shown on Company A or Company B?
23rd Apr 2021
Asset recognition criteria
Which company should book the asset when there is a middle-company involved for finance?
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